HP's Q2 2012 earnings call the beginning of a major company restructuring - 27,000 jobs to be lost
HP on Wednesday announced its Q2 2012 earnings. In an exceedingly dry news release, HP noted a 3 percent drop in revenue, from $31.6 billion a year ago to $30.7 billion for the three months ending in March.
The bigger news, perhaps, is that HP also announced plans for "a multi-year productivity initiative designed to simplify business processes, advance innovation and deliver better results for customers, employees and shareholders."
That means restructuring, of course, and restructuring generally means a reduction in force. HP announced that it "expects approximately 27,000 employees to exit the company." That's 8 percent of total employees, and they'll be gone by November 2014. Early retirement options will be offered, HP said, so hopefully that will mean fewer layoffs. The reductions also will vary by nation, HP said.
"These initiatives build upon our recent organizational realignment, and will further streamline our operations, improve our processes, and remove complexity from our business," said Meg Whitman, HP president and chief executive officer. "While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long term health of the company. We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders."
But what about the continued future of our beloved OS? Not surprisingly, the former Palm and the now open-sourced webOS barely garnered a mention in Wednesday's announcements, save for a note that "HP recorded impairment charges to goodwill and certain intangible assets associated with the acquisition of Palm Inc. The charges relate to HP's decision to wind-down the webOS device business."